Do the Buyer and Seller Have to Use the Same Escrow Company?

February 17, 2020

When you are buying a new home, you will hear terms like "escrow," "title and escrow," and "title search," among many others. That's because there is a lot that goes on behind the scenes when you're buying a home. There are a lot of requirements to be met, including the loan process, inspections, negotiations, title searches, buyer's and lender's insurance, and a whole lot more. That's why buying a house is both exciting and nerve-wracking at the same time, especially if you are a first-time homebuyer with no idea what to expect. Title and escrow companies, while not required by law, are the best way to handle home closings.

As we already stated, you may not be legally required to use a title and escrow company when you purchase a home, but using one can help you navigate the sometimes-rocky waters that come with the process. The title and escrow company knows the business and can get the important things done when they need to be done in order to facilitate a closing on your home without any issues.

Now, what about the title and escrow company used during the closing process. Do the buyer and seller have to use the same company? First, let's look at the terms "title company" and "escrow company." Although they are frequently used interchangeably, they are not necessarily the same thing. A title company issues buyer's and lender's title insurance. The escrow holds the money and all of the important documents associated with closing. They also see to it that all of the little details are in order so that a trouble-free closing can occur. Some companies are both an escrow company and a title company, which can make the process even easier because one company is handling everything. This is a much more streamlined way of getting it done. The buyer and seller can choose different escrow companies but typically use only one. More often, it is the title companies that differ. This is referred to as a "split closing."

A "split closing" means two title companies are involved in issuing the title insurance policies. This will occur when the seller and buyer prefer different companies. Under Section 9 of the "Real Estate Settlement and Procedures Act (RESPA)," sellers are not allowed to make using a specific title insurance company a condition of the sale. The buyer has the right to choose a title company to issue the policies. There are exceptions, of course. If the seller pays for both title insurance policies (owner and lender's), then the seller can use the title company of their choice, and vice versa.

Using different companies can be a challenge. It means there are more people involved who have to be on the same page at the same time to accomplish everything that needs to be done in order to close smoothly. Key Title & Escrow is both a title company and an escrow company. At Key Title & Escrow, we offer a full range of title and escrow services that allow us to walk you through the closing process from start to finish. We offer Florida title insurance, title searches, Judgment & lien searches, Property title searches, Escrow closing services, and more. With more than 21 years in the business of serving the real estate industry, we have the knowledge and the connections to help you get through your closing quickly and efficiently. During our time in business, we have developed a reputation as a company that offers the best Florida title and escrow services available. We are known and respected for our quality, efficient closings and a level of customer service that adheres to the highest standards of professionalism. Our first priority is to give our customers the best closing experience possible and to make their home-buying experience stress free and enjoyable. Whether you are a buyer or a seller, our services are designed to streamline and simplify the closing process as much as possible and to ensure customer satisfaction to all parties involved.


The advantage of using one company for everything is that everybody involved is on the same timeline and working toward the same goals at the same time. What this means for both parties is that the closing can be facilitated on schedule, without having to wait for one company or another before the closing can occur. Key Title & Escrow is dedicated to providing all of the services you need under one roof. On the day of closing, you can expect that everything will be done that needs to be done, all of the paperwork will be ready to sign, and that money and title can exchange hands.

Our desire for your convenience even extends to when we close. We're available for weekend and after-hours closings to make it more convenient for you. When you're closing on a new home, there really is no better choice than Key Title & Escrow. Our extensive experience, professionalism, and commitment to the best customer service in the industry make us the right choice for title and escrow services in Florida. Give us a call at (305) 235-4571 or (800) 547-0006 to take advantage of the best title and escrow services in Florida.


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